In Defense of HUD

Rep. Maxine Waters has sent a letter to House Financial Services Committee Chair French Hill requesting an emergency hearing with U.S. Department of Housing & Urban Development (HUD) Secretary Scott Turner following the Trump Administration’s plans to lay off HUD staff and dismantle many of HUD’s programs.

In the letter, Rep. Waters raises serious concerns about the implications of sudden and reckless firing of HUD staff by Secretary Turner, President Trump, and Elon Musk’s Department of Government Efficiency (DOGE). Rep. Waters warns that these actions will exacerbate the nation’s housing and homelessness crisis, disrupt the broader mortgage and real estate industries, and undermine key protections against housing discrimination.

DOGE, an initiative of the second Trump administration led by Elon Musk, is not a Cabinet-level department of the government, but a temporary contracted government organization under the U.S. DOGE Service, formerly known as the United States Digital Service. DOGE’s stated purpose is to reduce wasteful and fraudulent federal spending, and eliminate excessive regulations. The organization was created to “modernize federal technology and software to maximize governmental efficiency and productivity.”

“Given the widely reported mass firings of employees at the Department of Housing and Urban Affairs (HUD) who manage or oversee critical federal programs related to ending homelessness, providing rental assistance, and supporting homeownership, I write to request that you immediately schedule a hearing with HUD Secretary Scott Turner so that the Committee can fully understand the impact of these actions on our nation’s worsening affordable housing and homelessness crisis,” wrote Rep. Waters. “…The Committee should be afforded the opportunity to investigate what is happening before irreparable harm is done to our economy.”

According to an internal memo obtained by The Washington Post, HUD’s entire workforce is projected to drop by about half—from about 8,300 employees to just over 4,000—with deep cuts in field offices nationwide.

In mid-February, HUD launched a U.S. Department of Government Efficiency (DOGE) Task Force to review how the Department is spending American taxpayer dollars. HUD’s DOGE Task Force is comprised of HUD employees who will examine how to best maximize the agency’s budget, and ensure that all programs, processes, and personnel are working together to advance the purpose of the Department.

“HUD will be detailed and deliberate about every dollar spent to serve rural, tribal and urban communities,” Secretary Turner said. “Thanks to President Trump’s leadership, we are no longer in a business-as-usual posture and the DOGE task force will play a critical role in helping to identify and eliminate waste, fraud and abuse and ultimately better serve the American people. We have already identified over $260 million in savings, and we have more to accomplish.”

It has been reported that $260 million in additional savings have already been identified at HUD through DOGE actions.

In the letter to Rep. Hill, Rep. Warren adds, “There is also growing public concern about the decisions being taken by the Secretary and Musk. Mortgage industry participants reportedly are alarmed that cuts at Ginnie Mae and the FHA may harm the mortgage market and prevent mortgage closings. Housing advocates are alarmed that many nonprofits that manage the provision of rental assistance may be denied funds appropriated by Congress, leaving both renters and landlords in the lurch. The Committee should be afforded the opportunity to investigate what is happening before irreparable harm is done to our economy.”

Click here to read Rep. Warren’s letter regarding HUD actions.

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Eric C. Peck

MortgagePoint Managing Digital Editor Eric C. Peck has 25-plus years’ experience covering the mortgage industry. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career in New York City with Videography Magazine before landing in the mortgage finance space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
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